Save for your child’s education
Education is costly and requires much thought and consideration.
Without a proper savings strategy; you could find yourself running around for that extra cash to pay for your child’s education.
“With the increasing education costs; parents should take it upon themselves to plan and save in advance. Not forgetting that unforeseen expenses will pop-up from time to time.
“This puts strain on parent’s pockets; especially if these unforeseen expenses are not planned for,” said Ester Ochse, from FNB.
Start saving
It’s never too late to start saving, for the short or long term. Even a minimum amount of R 300 per month in a Savings Account can help in contributing to their future.
Draw up a savings plan
A savings plan is your blueprint to your savings journey. This plan should highlight your aims, objectives and goals for the year. Review this plan on an ongoing basis and ensure that you stick to your objectives.
Goals
Goal-based planning that encompasses both short and long-term goals are important. These goals can help you understand what your priorities should be and where your focus should lie. These goals will help you manage your finances and, at the same time, ensure that you have enough for all your expenses, including emergencies.
Budget
Budgeting may be a tedious activity but can help steer you away from unnecessary spending and will help you keep track of your spending. In your budget ensure that you list your child’s education fees, uniform costs, stationery, extra-curricular, medical expenses, and textbooks to mention a few. Do a comparison on a year-on-year basis and see if your expenses have increased or decreased.
Open a savings account
Look at opening a Savings Accounts or Unit Trust for your child. Look at the interest and return on investment when deciding on which account to open.
General school expenses
Day-to-day school expenses will not end and will add to your budget quite drastically. Many schools advocate that children need to partake in extracurricular activities but these activities may come at a cost. Ensure that you understand what your child enjoys doing before enrolling them in a class. This will leave you with less wastage and with a happy child.
